Silvergate stock falls 32% after-hours after filing delay, possible inquiries
The crypto bank faces possible inquiries from U.S. Congress, the DOJ, and bank regulators.
Silvergate Bank saw its shares fall 32% to $9.14 in after-hours trading on March 1.
Those losses come after the company’s said in a filing submitted to the U.S. Securities and Exchange Commission (SEC) on March 1 that it would delay its annual 10-K report by two weeks.
The company said it is “analyzing certain regulatory and other inquiries and investigations” that are pending. It said that private litigation, as well as regulatory activity, could lead to restrictions on its activities and ability to “continue as a going concern”
Silvergate specifically alluded to inquiries and investigations underway by U.S. Congress (i.e. senators), bank regulators, and the U.S. Department of Justice.
Silvergate has come under scrutiny in recent months primarily due to its supposed role in the collapse of FTX, an apparently related bank run, and various other adjacent issues.
The crypto derivatives trading firm LedgerX incidentally said in private messages yesterday that it would shift from Silvergate to its competitor, Signature Bank.